One year of Op Sindoor: The operation that spawned a spending shield

Capex up, sharper focus on air defence and drones

A year after India launched Operation Sindoor — strikes targeting terrorist infrastructure in Pakistan in response to the April 22 Pahalgam attack — the lessons of the four-day conflict are reflected in the country’s defence budget, military programmes, and organisational changes within the armed forces.

 

The Budgetary allocation for defence as a percentage of GDP for FY27 reversed a declining trend. It rose to just under 2 per cent with a Budget Estimate (BE) of ₹7.85 trillion for FY27, up from ₹6.81 trillion in the previous year.

 

Defence’s share of the GDP had declined from 2.25 per cent in FY20 to 1.91 per cent in FY25 and FY26. It had fallen below the crucial 2 per cent threshold — a long-standing demand of defence experts and industry — in FY24, registering at 1.97 per cent.

 

Also visible post-Operation Sindoor was a modernisation boost amid improved fund utilisation, with the capital outlay on defence services increasing by 17.62 per cent over the FY26 Revised Estimate (RE) of ₹1.86 trillion and by 21.84 per cent over the FY26 BE of ₹1.80 trillion, reaching ₹2.19 trillion in FY27. This accounts for 27.96 per cent of the total Ministry of Defence (MoD) allocation. 

 

Out of the total allocation under the ‘capital’ head, ₹1.85 trillion is earmarked for capital acquisition — the modernisation budget of the armed forces — which is approximately 24 per cent higher than the FY26 BE under the same head.

 

Despite India offering an off-ramp after the initial strikes, launched on the intervening night of May 6-7, Pakistan responded with aerial incursions across the length of the western border, attempting to target both civilian and military infrastructure.

 

The conflict witnessed at least three military firsts: India’s use of air-launched cruise missiles, Pakistan’s use of conventionally armed short-range ballistic missiles, and drone warfare by both sides.

 

India’s integrated air defence architecture — bringing together assets from all three services, albeit under the overall responsibility of the Indian Air Force — successfully thwarted the Pakistani attempts.

 

By the time the conflict was paused on the evening of May 10, the subcontinent had been introduced to “kinetic, noncontact” warfare — military parlance for combat conducted through stand-off projectiles without placing troops in direct, close-quarters engagement.

 

That led India to launch an effort to establish an aerospace defence shield under Mission Sudarshan Chakra, announced by Prime Minister Narendra Modi in his Independence Day speech last year.

 

A committee constituted to examine the Sudarshan Chakra project and prepare an action plan has submitted its draft report, a defence source told Business Standard. 

 

Under this mission, the country’s national security shield is to be expanded by 2035 to ensure comprehensive protection of both strategic and civilian critical infrastructure. 

 

It is likely to be implemented in two phases — a medium-term action plan for the next five years and a long-term action plan extending to 10 years.  “The country has to come to terms with the reality that today, anything and everything is a target, and prepare accordingly. Sudarshan Chakra is a step in the right direction, but the principal challenge lies in its scale, given India’s size,” said Major General Ashok Kumar (Retd), Director General at the Centre for Joint Warfare Studies.

 

The adoption of drones has accelerated over the past year. The technology has now percolated down to the unit level within the army, which has embraced the ‘eagle-in-the-arm’ concept, which allows every soldier to be trained to operate drones, much like their service firearm or other equipment.  “India is fully cognisant of the fact that drones are democratising access to war-fighting capabilities, blurring the distinction between the ‘strong’ and the ‘weak’ in the conventional sense,” said Major General Kumar (Retd), adding, “The reorganisation of structures, focused manufacturing of drones, and the development of defences against them are now key areas of focus.”

 

The impact of the proliferation of unmanned systems is also evident in organisational changes underway within the armed forces. 

 

A 2047 vision document unveiled by the government in March envisages the creation of four new specialised tri-service organisations: A defence geospatial agency, a data force, a drone force and a cognitive warfare action force.

 

The planned cognitive warfare action force appears to be a lesson drawn directly from Operation Sindoor, during which information warfare, disinformation and psychological operations assumed unprecedented prominence.

 

Earlier this month, Chief of Defence Staff General Anil Chauhan revealed that efforts to establish the cognitive warfare organisation are under way, with the proposal having been moved and financial clearance secured.

 

Procurement and DAC clearances over the past year  

 

July 2025:

 

The Defence Acquisition Council (DAC) accorded Acceptance of Necessity (AoN) — the approval-in-principal — for 10 capital acquisition proposals worth approximately ₹1.05 trillion, including surface-to-air missiles, electronic warfare systems, including mines, mine counter measure vessels and autonomous vessels for Navy.

 

August 2025:

 

The DAC cleared proposals worth about ₹67,000 crore, which included mountain radars, air defence upgrades, BrahMos fire control system and launcher, medium altitude long endurance-class unmanned aerial systems for the three Services.

 

September 2025:

 

The defence ministry signed a contract with Hindustan Aeronautics Limited worth ₹62,370 crore for procurement of 97 Light Combat Aircraft Mk1A, which will be fitted with indigenous UTTAM radars for the Indian Air Force.

 

October 2025:   The DAC approved capital acquisition proposals worth about ₹79,000 crore, including anti-tank Nag Missile System Mk-II, ground-based mobile Electronic Intelligence Systems to detect signals, naval platforms and light weight torpedoes for Navy.

 

November, 2025:

 

HAL signed an agreement with US-based GE Aerospace for 113 F404-GE-IN20 engines to support the LCA Mk1A programme.

 

December 2025:

 

The DAC cleared AoN proposals worth about ₹79,000 crore, which included loitering munition systems, Pinaka long-range guided rockets, Astra Mk-II missiles, SPICE-1000 kits and drone detection system.

 

March 2026:

 

The DAC accorded AoN proposals worth about ₹2.38 trillion, including S-400 air defence systems, air defence tracked system for Army, remotely piloted strike aircraft and medium transport aircraft.

 

FY 2025-26:

 

The Ministry of Defence accorded AoNs for 109 proposals worth ₹6.81 trillion and signed capital procurement contracts for 503 proposals worth ₹2.28 trillion. 

 

FY 2026-27 (Budget estimates)

 

Allocated ₹2.19 trillion under the capital head (up by 21.84 per cent), highlighting the focus on air defence, unmanned systems and modernisation.

 

Data source: PIB